Housing sales in 8 Indian cities reach 10-year high, rising 11 per cent in first half of 2024: Knight Frank

Housing sales in India hit an 11-year high of 1.73 lakh units, and office demand reached a record 34.7 million square feet across eight major cities from January to June.

This was revealed in a report – India Real Estate: residential and office for January to July – released by global real estate consultants Knight Frank.

On an annual basis, housing sales rose 11 per cent to 1,73,241 units, and office space leasing grew 33 per cent to 34.7 million square feet.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “Strong growth momentum is reflected in the robust performance of the Indian real estate markets.” 

As a result, the report said the residential and office segments have recorded decadal-high numbers. Baijal mentioned that premium housing formed 34 per cent of all sales in the first half of 2024.

Within NCR, Gurugram, in particular, has emerged as a preferred choice for luxury homebuyers. There is a large presence of high-net-worth individuals (HNIs) and Ultra NHIs and a significant rise in the number of affluent millennials in the region, who prefer to stay close to work and are willing to go the extra mile for their convenience and indulgent lifestyle, said Aakash Ohri, Joint Managing Director & Chief Business Officer, DLF Homes.

During Jan-June 2024, housing sales in Mumbai increased by 16 per cent annually to 47,259 units, while office space leasing in the city surged 79 per cent to 5.8 million square feet.

In Delhi-NCR, housing sales fell 4 per cent to 28,998 units, but office space demand grew 11.5 per cent to 5.7 million square feet.

Bengaluru saw a 4 per cent growth in housing sales to 27,404 units and a 21 per cent rise in office demand to 8.4 million square feet.

Chennai saw a 12 per cent growth in residential property sales to 7,975 units, but office demand fell 33 per cent to 3 million square feet.

Kolkata saw a 25 per cent growth in housing sales to 9,130 units. The city also saw a 23 per cent rise in office space leasing to 0.7 million square feet.

The surge in demand for homes underscores a fundamental shift in people's perception of home ownership. The value of having a place to call home has become more apparent than ever before. 

Ohri said that the substantial returns offered by residential properties, especially luxury homes, have fueled an increasing trend of purchasing homes for investment purposes. He added that there has also been a newly stirred-up insistence on luxurious integrated townships that offer home buyers affluent homes, safety, and security.